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21 <br />7.2 HD PEG Channels. <br /> <br />(a) No later than one year after the Effective Date of this Franchise, and upon 90 days <br />written notice to Grantee, Grantee shall provide four (4) HD PEG Channels that are <br />simulcasted in Standard Definition (“SD”) until SD is no longer offered. At the <br />Commission’s discretion, two of the four PEG Channels may be narrowcast channels. At <br />any time 24 months after Effective Date of this Franchise, the Commission may require <br />additional Channels if it satisfies the standards set out in Minn. Stat. § 238.084. The parties <br />agree that PEG funding may be used to support streaming of PEG programming, provided <br />the Commission or City does not permit PEG funding to be used for operational expenses <br />except as permitted by law. Grantee may propose dedicated streaming options as an <br />alternative to the additional linear channels. <br /> <br />(b) The City acknowledges that receipt of an HD format PEG Channel may require <br />Subscribers to buy or lease special equipment or pay additional HD charges applicable to <br />all HD services. <br /> <br />(c) The Commission shall pay for and be responsible for all HD playback servers to <br />be located at 2460 East County Road F, Suite A, White Bear Lake, MN 55110 (“Playback <br />Facility”). Grantee agrees that it shall be responsible for costs associated with the <br />provision of encoders or other equipment necessary to receive HD/SD signals at the <br />headend, and to convert PEG HD signals to SD consistent with the historic practice <br />between the parties. <br /> <br />7.3 Control of PEG Channels. The control and administration of the PEG Channels shall rest <br />with the City. The City may delegate, from time to time over the term of this Franchise, such <br />control and administration to various entities as determined in City’s sole discretion. As of the <br />Effective Date of this Franchise the City has delegated control of the PEG Channels to the <br />Commission. <br /> <br />7.4 Transmission of PEG Channels. PEG Channels may be used for transmission of non- <br />video signals in compliance with Applicable Laws. This may include downstream transmission <br />of data using a protocol such as TCP/IP or current industry standards. Should Grantee develop the <br />capability to provide bi-directional data transmission, spectrum capacity shall be sufficient to allow <br />Subscribers to transmit data to PEG facilities. <br /> <br />7.5 PEG Channel Locations. <br /> <br />(a) Grantee shall continue cablecasting PEG programming on the Cable System on <br />the same Channel locations as such programming is cablecast within the City as of the <br />Effective Date. Current SD PEG Channel locations as of the Effective Date as well as the <br />location of the four (4) HD PEG Channels to be provided under Section 7.2 are listed on <br />Exhibit C. Grantee agrees not to change these PEG Channel locations more than two (2) <br />times during the term of this Franchise unless required by law for other programmers with <br />specific Channel number rights or pursuant to an overall Channel reorganization of the <br />entire Channel lineup. In no event shall any PEG Channel relocations be made prior to <br />ninety (90) days written notice to the City by Grantee, except for circumstances beyond